AP Explains: What is net neutrality and why does it matter?

Associated Press

December 14, 2017Updated: December 14, 2017 4:06pm

Photo: BRENDAN SMIALOWSKI /AFP /Getty Images

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FCC Chairman Ajit Pai prepares to exit the FCC hearing at the Federal Communications Commission on December 14, 2017, in Washington, DC, after police evacuated the room due to security reasons, moments before the vote to repeal net neutrality protections. less

FCC Chairman Ajit Pai prepares to exit the FCC hearing at the Federal Communications Commission on December 14, 2017, in Washington, DC, after police evacuated the room due to security reasons, moments before ... more

Photo: BRENDAN SMIALOWSKI /AFP /Getty Images

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A protester holds up a sign supporting net neutrality against a plan by Federal Communications Commission head Ajit Pai, during a protest on December 7, 2017 in Washington. Demonstrations in support of net neutrality are planned nationwide at hundreds of Verizon stores and other venues. less

A protester holds up a sign supporting net neutrality against a plan by Federal Communications Commission head Ajit Pai, during a protest on December 7, 2017 in Washington. Demonstrations in support of net ... more

Photo: ANDREW CABALLERO-REYNOLDS /AFP /Getty Images

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Proponents of net neutrality protest against Federal Communication Commission Chairman Ajit Pai outside the American Enterprise Institute before his arrival May 5 in Washington. Pai, a Republican, set a Dec. 14 vote on overturning rules adopted by the FCC in 2015, saying he wants to move away from “heavy-handed, utility-style regulations upon the internet.” less

Proponents of net neutrality protest against Federal Communication Commission Chairman Ajit Pai outside the American Enterprise Institute before his arrival May 5 in Washington. Pai, a Republican, set a Dec. 14 ... more

A man holds a 'Don't Let Corps Control Free Speech' protest sign during a demonstration against the proposed repeal of net neutrality outside the Federal Communications Commission headquarters in Washington, DC ... more

Photo: ALEX EDELMAN, AFP/Getty Images

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A woman holds a 'Save the Net' protest sign during a demonstration against the proposed repeal of net neutrality outside the Federal Communications Commission headquarters in Washington, DC on December 13, 2017. / AFP PHOTO / Alex EDELMANALEX EDELMAN/AFP/Getty Images less

A woman holds a 'Save the Net' protest sign during a demonstration against the proposed repeal of net neutrality outside the Federal Communications Commission headquarters in Washington, DC on December 13, ... more

Photo: ALEX EDELMAN, AFP/Getty Images

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The proposal to roll back net neutrality rules has stirred protests, including this one in Washington last week. Many companies made their objections to the plan known online this week, but the giants of tech have largely been quiet. less

The proposal to roll back net neutrality rules has stirred protests, including this one in Washington last week. Many companies made their objections to the plan known online this week, but the giants of tech ... more

Photo: ANDREW CABALLERO-REYNOLDS, Contributor

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Demonstrators hold up angry-face emoji signs on Thursday during a net neutrality protest.

Demonstrators hold up angry-face emoji signs on Thursday during a net neutrality protest.

Photo: Bloomberg Photo By Scott Eisen

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A small group of protestors supporting net neutrality protest against a plan by Federal Communications Commission (FCC) head Ajit Pai, during a demonstration on December 7, 2017 in Washington. Demonstrations in support of net neutrality are planned nationwide at hundreds of Verizon stores and other venues. / AFP PHOTO / Andrew CABALLERO-REYNOLDSANDREW CABALLERO-REYNOLDS/AFP/Getty Images less

A small group of protestors supporting net neutrality protest against a plan by Federal Communications Commission (FCC) head Ajit Pai, during a demonstration on December 7, 2017 in Washington. Demonstrations in ... more

Photo: ANDREW CABALLERO-REYNOLDS, AFP/Getty Images

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Demonstrators chant and hold up signs during a net neutrality protest outside a Verizon Communications Inc. store in Boston, Massachusetts, U.S., on Thursday, Dec. 7, 2017. The debate over internet regulation has steadily morphed over the last few years from an insular fight between telecom experts into a standard-issue political screaming match. Photographer: Scott Eisen/Bloomberg less

Demonstrators chant and hold up signs during a net neutrality protest outside a Verizon Communications Inc. store in Boston, Massachusetts, U.S., on Thursday, Dec. 7, 2017. The debate over internet regulation ... more

Photo: Scott Eisen, Bloomberg

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A sign is projected onto a building during a demonstration supporting net neutrality in a protest against a plan by Federal Communications Commission (FCC) head Ajit Pai, on December 7, 2017 in Washington. Demonstrations in support of net neutrality are planned nationwide at hundreds of Verizon stores and other venues. / AFP PHOTO / mari matsuriMARI MATSURI/AFP/Getty Images less

A sign is projected onto a building during a demonstration supporting net neutrality in a protest against a plan by Federal Communications Commission (FCC) head Ajit Pai, on December 7, 2017 in Washington. ... more

Photo: MARI MATSURI, AFP/Getty Images

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People protest during a rally to 'Protect Net Neutrality' as they voice their opposition to the impending FCC vote, outside the Federal Building in Los Angeles, California on November 28, 2017. Organizers say "that a ruling in favor of repealing the 2015 rules could result in internet service providers prioritizing connection speeds to certain sites, such as advertisers, with access to certain websites being restricted at the service providers discretion and the opportunity to raise fees for access that otherwise is free". / AFP PHOTO / Mark RALSTONMARK RALSTON/AFP/Getty Images less

People protest during a rally to 'Protect Net Neutrality' as they voice their opposition to the impending FCC vote, outside the Federal Building in Los Angeles, California on November 28, 2017. Organizers say ... more

Photo: MARK RALSTON, AFP/Getty Images

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People protest during a rally to 'Protect Net Neutrality' as they voice their opposition to the impending FCC vote, outside the Federal Building in Los Angeles, California on November 28, 2017. Organizers say "that a ruling in favor of repealing the 2015 rules could result in internet service providers prioritizing connection speeds to certain sites, such as advertisers, with access to certain websites being restricted at the service providers discretion and the opportunity to raise fees for access that otherwise is free". / AFP PHOTO / Mark RALSTONMARK RALSTON/AFP/Getty Images less

People protest during a rally to 'Protect Net Neutrality' as they voice their opposition to the impending FCC vote, outside the Federal Building in Los Angeles, California on November 28, 2017. Organizers say ... more

Photo: MARK RALSTON, AFP/Getty Images

AP Explains: What is net neutrality and why does it matter?

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NEW YORK — “Net neutrality” regulations, designed to prevent internet service providers like Verizon, AT&T, Comcast and Charter from favoring some sites and apps over others, are on the chopping block. On Thursday, the Federal Communications Commission voted to not only undo the Obama-era rules that have been in place since 2015, but forbid states to put anything similar in place.

Here’s a look at what the developments mean for consumers and companies.

What is net neutrality?

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In a vote along party lines, the federal government lifted sweeping net-neutrality rules that guaranteed equal access to the internet. Chris Lewis, of Public Knowledge which supports open internet, says the net neutrality fight isn't over. (Dec. 14)

Media: Associated Press

Net neutrality is the principle that internet providers treat all web traffic equally, and it’s pretty much how the internet has worked since its creation. But regulators, consumer advocates and internet companies were concerned about what broadband companies could do with their power as the pathway to the internet — blocking or slowing down apps that rival their own services, for example.

The FCC in 2015 approved rules, on a party-line vote, that made sure cable and phone companies don’t manipulate traffic. With them in place, a provider such as Comcast can’t charge Netflix for a faster path to its customers, or block it or slow it down.

The net neutrality rules gave the FCC power to go after companies for business practices that weren’t explicitly banned as well. For example, the Obama FCC said that “zero rating” practices by AT&T violated net neutrality. The telecom giant exempted its own video app from cellphone data caps, which would save some consumers money, and said video rivals could pay for the same treatment. Under current chairman Ajit Pai, the FCC spiked the effort to go after AT&T, even before it began rolling out a plan to undo the net neutrality rules entirely.

A federal appeals court upheld the rules in 2016 after broadband providers sued.

What telcos want

Big telecom companies hate the stricter regulation that comes with the net neutrality rules and have fought them fiercely in court. They say the regulations can undermine investment in broadband and introduced uncertainty about what were acceptable business practices. There were concerns about potential price regulation, even though the FCC had said it won’t set prices for consumer internet service.

What Silicon Valley wants

Internet companies such as Google have strongly backed net neutrality, but many tech firms have been more muted in their activism this year. Netflix, which had been vocal in support of the rules in 2015, said in January that weaker net neutrality wouldn’t hurt it because it’s now too popular with users for broadband providers to interfere.

What happens next

Although the FCC’s two Democrats said they will oppose the proposal, the repeal is likely to prevail as Republicans dominate 3-2. The vote for net neutrality in 2015 was also along party lines, but Democrats dominated then.

In the long run, net-neutrality advocates say undoing these rules makes it harder for the government to crack down on internet providers who act against consumer interests and will harm innovation. Those who criticize the rules say undoing them is good for investment in broadband networks.

But advocates aren’t sitting still. Some groups plan lawsuits to challenge the FCC’s move, and Democrats — energized by public protests in support of net neutrality — think it might be a winning political issue for them in 2018 congressional elections.